Jamaica’s economic landscape in late 2025 presents a picture of robust growth and stability, underscored by historic highs in net international reserves and a significant surge in remittance inflows during the third quarter. This positive business news paints a picture of an economy strengthening its financial resilience and relying on key external support mechanisms.
Historic Leap in Net International Reserves
As of August 31, 2025, Jamaica achieved a monumental milestone, with its net international reserves (NIR) climbing to US$6.15 billion. This figure not only represents a US$38 million increase from July 2025 but also marks the highest ever recorded for the nation. The Bank of Jamaica (BOJ) reported that this surge was primarily driven by an increase in foreign assets, reaching US$6.18 billion. This historic reserve level provides a substantial buffer, supporting approximately 51 weeks of goods imports and 32 weeks of goods and services imports. The strength of these reserves is more than 2.7 times the international benchmark and offers considerable security against potential economic shocks. Crucially, this achievement was noted as being without reliance on borrowed funds, signaling increased fiscal discipline and self-sufficiency.
Remittances Remain a Critical Economic Pillar
In parallel with the rise in foreign reserves, Jamaica’s remittance sector demonstrated its enduring importance to the national economy. For the April to June quarter of 2025, net remittance inflows totaled US$830.6 million, reflecting a healthy 3.8% increase year-on-year. This growth was further evidenced in June 2025, where net inflows reached US$267.5 million, a 2.8% rise compared to the previous year. Remittances continue to significantly outpace foreign direct investment and cover nearly half of Jamaica’s total import bill. The United States remains the dominant source, accounting for 68.2% of inflows, followed by the United Kingdom (11.4%), Canada (9.9%), and the Cayman Islands (6.2%).
However, the remittance sector is undergoing a period of consolidation. While inflows are steady, the number of active remittance locations has decreased, with a wave of exits among service providers. This trend points towards market maturation, where larger, more efficient operators are capturing a greater share of the market, driven by factors such as increased operational costs and regulatory requirements.
Stock Market Activity and Economic Outlook
The Jamaica Stock Exchange (JSE) continues to be a focal point for business news. During August 2025, Trans Jamaica Highway Limited was among the most actively traded stocks, alongside Sagicor Select Funds Limited and Wigton Energy Limited, indicating sustained investor interest in key sectors. This activity occurs against a backdrop of generally positive economic forecasts.
Preliminary indicators suggest that Jamaica’s economy expanded in the September 2025 quarter, with growth estimated in the range of 3.0% to 4.0%. This expansion is attributed to growth in sectors such as electricity and water supply, agriculture, and tourism and its allied services. The full-year growth projection for 2025 stands at 1.6%, supported by factors like a tight labor market, growing employment, and robust remittance inflows.
Inflation remains a closely watched metric. For the twelve months ending September 2025, the annual point-to-point inflation rate stood at 2.1%. The monthly consumer price index saw an increase of 0.8% in September 2025, primarily driven by higher costs in food, housing, and education sectors. The Bank of Jamaica noted that while headline inflation is currently below its target range, core inflation remains within the target, and the risks to the inflation outlook are primarily viewed as upside.
A Resilient Caribbean Economy
Jamaica’s economic performance in the latter half of 2025 reflects a broader trend of resilience within the Caribbean region, albeit with varied growth trajectories among its neighbors. The strong showing in reserves and remittances not only bolsters Jamaica’s financial security but also contributes to its positive standing in the regional business news landscape. The combination of historical reserve levels, steady remittance flows, and projected economic expansion positions Jamaica favorably as it navigates the remainder of 2025 and looks towards the future.